The subprime mortgage crisis may have taken a toll on the Sensex but some sectors such as metals, banking and PSU were even worse hit than the benchmark index.
In terms of value, the BSE Metal index eroded the highest, due to a global dip in the metal prices. The Metal measure fell the highest by 1,307 points or 13.3% during the week to end at 9,811 points.
According to an analyst from the domestic brokerage firm, metal prices have dipped further in last 24 hours in the global market leading to erosion in the prices of metal stocks. The prices of the copper dipped by 8.6%, nickel by 5.4% and zinc by 8.1% on the London Metal Exchange (LME).
The banking sector stocks were the second highest to be hit. The BSE Bankex was hit by 8.4% or was down 624 points to close at 7,351 points.
The analysts said that the subprime crisis has hit the investors? sentiments towards the banking stocks. There has been an impression in the market that the subprime crisis may affect credit off-take in the financial market.
This had its impact on the BSE PSU index also as this index has sizeable representation of public sector banks (PSBs) along with public sector undertakings (PSUs). The BSE PSU dipped by 7.9% or 517 points to end at 6,542 points.
Compared to metal, bank and psu index, the erosion is less in the benchmark Sensex. The BSE Sensex dipped by 6.7% or 959 points to close at 14,141 points.
Among other sectoral indices, the BSE Oil shed 6.2% or 464 points to end at 7,427 points over the week.
The strengthening of the domestic currency has impacted the IT stocks. The BSE IT shed 5.1% or 2.33 points to end at 4,500 points.
According to an analyst, the subprime mortage crisis has witnessed nervousness in the US, Asian and other markets of the world. The domestic market dipped with the apprehension of the market players that the subprime crisis may have linkages at home too.
The stock prices of the small and mid cap companies have taken a hit during this meltdown.